* Surging prices for food staples from coffee to meat to vegetables are driving up the cost of groceries in the United States, pinching consumers and companies that are still grappling with a sluggish economic recovery.

* General Motors said it recalled 1.7 million more vehicles as Chief Executive Mary Barra stepped up her response to the company's vehicle-defect problem, announcing three new safety recalls and vowing to change the way the auto maker handles recalls.

* A feud has erupted among distillers Brown-Forman Corp and Diageo Plc over a seemingly simple question: When is a whiskey "Tennessee Whiskey"?

* WhatsApp will soon belong to Facebook but the messaging app maker says it won't approach privacy the same way as its soon-to-be-parent company. On Monday, WhatsApp updated its app, rolling out a new user settings screen dedicated to privacy. It also published a blog post promising not to change what data it collects from users, and how it collects it.

* General Electric Co's retail credit business is facing a pair of probes from federal regulators over possible violations of consumer financial laws, disclosures that were released in paperwork for a planned initial public offering of the business.

* Langham Hospitality Group tapped on Monday a Ritz Carlton veteran as its new chief executive, part of the Hong Kong-based company's plan to expand its brands worldwide.

* Amazon.com Inc will begin shipping its long-awaited video-streaming device in early April, through its website as well as retailers including Best Buy Co and Staples Inc, said people familiar with the company's plans.

FT

General Motors Co's new chief executive on Monday recalled more than 1.5 million vehicles, including some current models, acknowledging the Detroit automaker fell short in catching faulty ignition switches linked to 12 deaths.

The Bank of England is likely to announce an overhaul of its top officials as soon as Tuesday, as Governor Mark Carney prepares to unveil major reforms to the way Britain's central bank is managed.

Barclays Plc will try to take the sting out of a heated debate over bankers' bonuses on Tuesday by pointing to a drop in the value of shares given to its top executives even as the lender's Chief Executive Antony Jenkins is awarded a 4 million pound ($6.66 million) payout.

Irish brewer Guinness, owned by Diageo Plc, dropped sponsorship of New York City's St. Patrick's Day celebrations amid growing criticism of organizers' exclusion of gay and lesbian groups from the event.

Nigeria's suspended central bank Governor Lamido Sanusi has released a 27-page rebuttal to allegations of "gross misconduct", calling on President Goodluck Jonathan to reinstate him as the outrage grows over his accusations about missing oil revenues.

NYT

* Mary T. Barra, General Motors' chief executive, announced another round of wide-ranging recalls on Monday, a sign that the company was moving with a new sense of urgency on safety problems after it disclosed a decade-long failure to fix a defect tied to 12 deaths.

* Tesla Motors, the maker of high-end all-electric cars, has time till April 1 to comply with New Jersey's restrictive dealership laws that prevent the company from making any direct sales to customers. After Texas, Arizona and New Jersey, Ohio too is considering passing a similar legislation that protects the interests of car dealers and franchises.

* About 10 days after being identified by Newsweek magazine as the mysterious creator of the digital currency bitcoin, Dorian Nakamoto, a 64-year-old semi-employed engineer, has hired a lawyer and issued a statement unconditionally denying that he had any involvement in bitcoin.

* A bond insurer on Monday struck a blow against Detroit's proposal to exit bankruptcy, arguing in a new lawsuit that Detroit's approach would illegally discriminate against the city's third-biggest group of creditors - the investors who provided $1.4 billion for its workers' pensions nearly a decade ago.

* American manufacturing output recorded its largest increase in six months in February and factory activity in New York State expanded early this month, the latest signs that the economy is gaining momentum after being dampened by severe weather.

Canada

THE GLOBE AND MAIL

* Russia's quick recognition of Crimea as an independent state is risking a second round of more damaging sanctions by the United States and the European Union that could unleash a new Cold War.

* Canada is joining the European Union and the United States in slapping additional sanctions on those it blames for threatening Ukraine's sovereignty, retaliating against what Prime Minister Stephen Harper has branded the "Putin regime."

Reports in the business section:

* Whitecap Resources Inc said on Monday that it was buying Western Canadian oil and gas properties from Imperial Oil Ltd for C$855 million ($773.65 million). The deal pushes the energy industry's tally for merger and acquisition activity for the quarter to C$7 billion.

NATIONAL POST

* Zach Paikin, a rising star in the Liberal party, has decided not to run in the next election because leader Justin Trudeau has broken a "key promise" to hold open nominations in federal ridings across the country.

* Donna Kennedy-Glans became the second MLA to announce she would sit as an independent, further imperilling Alberta premier Alison Redford's already-shaky long-term leadership prospects.

FINANCIAL POST

* Canada and the European Union have reached an agreement in principle on a free-trade deal that will give Canadian businesses preferential access to an EU market of 500 million consumers and lead to what the federal government says are cost savings for consumers.

* BlackBerry Ltd has laid off 120 employees in its product development and wireless technology divisions as part of an ongoing cost-cutting plan, the company said.

Hong Kong

SOUTH CHINA MORNING POST

-- Hutchison Whampoa has put on hold plans to build a luxury house at a government-owned green-belt site on The Peak after neighbours voiced their opposition and district councillors demanded a rethink.

-- The People's Bank of China has issued two drafts for consultation aimed at cracking down further on internet finance by limiting online shopping and money transfers for online-payment service providers, according to mainland media reports.

-- Hong Kong exporters are much more confident about their prospects in the first quarter of 2014, driven by machinery product orders as manufacturers gear up for a rebound in demand, a quarterly survey by the Hong Kong Trade Development Council showed.

THE STANDARD

-- Mainland police have handed over the two men alleged to have brutally hacked former Ming Pao chief editor Kevin Lau Chun-to in Sai Wan Ho last month.

-- MTR Corp will invite developers to submit expressions of interest for the Lohas Park phase four project in Tseung Kwan O on Tuesday, sources said. The development is expected to fetch as much as HK$2.5 billion ($321.93 million).

-- Mainland industrial park developer Optics Valley Union opens its retail book to raise up to HK$1.09 billion in its Hong Kong initial public offering. Trading debut is scheduled for March 28.

HONG KONG ECONOMIC JOURNAL

-- Tencent on Wednesday and Thursday sold an aggregate 563 million shares of ChinaVision Media for HK$1.01 billion ($130.06 million), reducing its stake to 1.23 percent from 8 percent, according to a stock exchange disclosure. The share sale came a day after Alibaba announced the acquisition of 60 percent of ChinaVision for HK$6.2 billion.

-- China Resources Power has no intention of participating in the Hong Kong power supply business and the suggestion from two of its executives to "nationalise" the city power supply assets was their personal view only, said executive vice chairman Zhang Shenwen.

Britain

The Telegraph

MONEYSUPERMARKET CO-FOUNDER BANKS 100 MLN STG

Simon Nixon, the businessman who founded the price comparison site Moneysupermarket.com after dropping out of university, has landed another 100 million pound ($166.44 million) windfall after selling a further 10 percent stake in the company.

DIAGEO TAKES ON JACK DANIEL'S IN ROW OVER HOW WHISKY CAN BE MADE

Diageo wants distilleries to be allowed to make Tennessee whiskey in reusable barrels, much to the horror of Jack Daniel's maker Brown-Forman Corp.

The Guardian

BANK OF ENGLAND REFORM ANNOUNCEMENT EXPECTED FROM MARK CARNEY

A major overhaul of the Bank of England is expected to be signalled today alongside the appointment of a new deputy governor.

VODAFONE'S PURCHASE OF ONO FUELS TALK THAT BIG UK ACQUISITION MIGHT BE NEXT

Vodafone has sparked speculation that it might be on the verge of a big UK acquisition after confirming it has used 6 billion pounds of its cash warchest to buy Ono, Spain's largest cable operator.

MORRISONS EMPLOYEE ARRESTED AS PART OF SALARY LEAK INVESTIGATION

A Morrisons employee has been arrested in connection with the theft and publication of personal details of thousands of the supermarket's staff last week.

JUST EAT AIMS TO RAISE 100 MLN STG IN FLOTATION

Just Eat, which uses the slogan "give hunger the finger", has announced plans for stock market listing that could value the online takeaway service at as much as 900 million pounds.

DYSON RECALLS 'FIRE-RISK' HEATERS

Dyson is recalling more than 1 million hot and cool fans over fears they could pose a fire risk. The recall was issued by the company on Monday after "a small number" short-circuited, causing a small internal fire.

The Times

ROYAL MAIL TURNS CLOCK BACK WITH CAPITAL CONTRACT

The pleasure of delivering many Londoners their council tax bills, parking fines and other local bureaucratic paperwork is to revert to the Royal Mail.

CUTTING HS2 COST WOULD BE IRRESPONSIBLE, SAYS NEW BOSS

Crewe should become the centre of transport for the North, David Higgins, the new boss of the HS2 high-speed railway, said in a report that argues in favour of accelerating the project.

CAPITA LANDS 90 MLN STG CALL CENTRE DEAL WITH JOHN LEWIS

John Lewis has chosen Capita to manage one of its online operations in a contract worth more than 90 million pounds. The outsourcing company will manage the retailer's call centre for its internet shopping service.

The Independent

SIR JON CUNLIFFE WARNS GLOBAL BANKS 'STILL TOO BIG TO FAIL'

Bank of England deputy governor Jon Cunliffe has warned there are still global banks which could not be wound up successfully without causing damage.

Fly on the Wall 7:00 AM Market Snapshot

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:Consumer Price Index for February at 8:30--consensus up 0.1% from prior monthHousing starts for February at 8:30--consensus up 3.4% from prior monthBuilding permits for February at 8:30--consensus up 1.6% from prior month

ANALYST RESEARCH

Upgrades

21Vianet (VNET) upgraded to Outperform from Neutral at Credit SuisseAlliance Fiber Optic (AFOP) upgraded to Buy from Neutral at B. RileyCACI International (CACI) upgraded to Sector Perform from Underperform at RBC CapitalCM Finance (CMFN) upgraded to Outperform from Market Perform at Raymond JamesFlowers Foods (FLO) upgraded to Outperform from Market Perform at BMO CapitalFortress (FIG) upgraded to Outperform from Market Perform at JMP SecuritiesHP (HPQ) upgraded to Overweight from Equal Weight at BarclaysL-3 Communications (LLL) upgraded to Sector Perform from Underperform at RBC CapitalMarketo (MKTO) upgraded to Neutral from Sell at UBSNabors Industries (NBR) upgraded to Neutral from Underperform at Credit SuisseNorth American Energy (NOA) upgraded to Buy from Hold at JefferiesPan American Silver (PAAS) upgraded to Sector Performer from Underperformer at CIBCUniversal Health (UHS) upgraded to Buy from Hold at KeyBanc

Chicago Bridge & Iron (CBI) initiated with an Outperform at CowenCoach (COH) initiated with an Equal Weight at BarclaysCommunity Bank System (CBU) initiated with a Neutral at Sterne AgeeEP Energy (EPE) initiated with a Buy at TopekaFluor (FLR) initiated with an Outperform at CowenFoster Wheeler (FWLT) initiated with a Market Perform at CowenG-III Apparel (GIII) initiated with an Overweight at BarclaysKate Spade (KATE) initiated with an Overweight at BarclaysM/I Homes (MHO) initiated with a Neutral at CitigroupMichael Kors (KORS) initiated with an Underweight at BarclaysNCI Building Systems (NCS) initiated with a Neutral at CitigroupNordstrom (JWN) initiated with an Equal Weight at BarclaysPVH Corp. (PVH) initiated with an Overweight at BarclaysPopular (BPOP) initiated with a Buy at BTIGRalph Lauren (RL) initiated with an Overweight at BarclaysSequential Brands (SQBG) initiated with an Overweight at Piper JaffrayVince Holding (VNCE) initiated with an Equal Weight at BarclaysWynn Resorts (WYNN) initiated with a Hold at Ascendiant

COMPANY NEWS

Hertz (HTZ) announced a new $1B share repurchase program, says board approved separation of equipment rental business; Hertz CEO Mark Frissora will continue as CEO of Hertz after HERC separationWal-Mart (WMT) to accept used video games for store creditMicrosoft (MSFT) says Marc Whitten, Chief Product Officer of Xbox, to leave companyAmerican Express (AXP) announced plans to spin off its business travel unit and form a joint venture with an investor group led by Certares; the joint venture investor group will invest $900M for a 50% stakeProsensa Holding (RNA) reported "encouraging" results from a Phase II trial of drisapersen for the treatment of Duchenne Muscular DystrophyGalena Biopharma (GALE) disclosed an SEC investigation into the company related to an outside investor relations firm retained by Galena in 2013Alphatec (ATEC) announced an agreement with OrthoTec to settle its ongoing litigation, with Alphatec agreeing to pay OrthoTec $49M over the next seven years in cash